Bath & Body Works (NYSE:BBWI) Stock Price Up 5% – Still a Buy?

Shares of Bath & Body Works, Inc. (NYSE:BBWI) were up 5% on Friday . The company traded as high as $19.87 and last traded at $19.7170. Approximately 2,331,826 shares traded hands during trading, a decline of 55% from the average daily volume of 5,213,482 shares. The stock had previously closed at $18.78.

Bath & Body Works News Summary

Here are the key news stories impacting Bath & Body Works this week:

• Positive Sentiment: Company will offer fewer discounts in 2026, a change that management says customers will notice and that investors expect could improve gross margins and reduce margin volatility. Bath & Body Works says it will offer fewer discounts in 2026
• Positive Sentiment: Telsey Advisory raised its BBWI price target to $25 while keeping a Market Perform rating — an endorsement that may support sentiment, though the rating is not a full buy upgrade. Telsey Advisory Raises Bath & Body Works (BBWI) Target to $25, Maintains Market Perform Rating
• Neutral Sentiment: Media/sector coverage (e.g., 247WallSt) lists BBWI as a consumer discretionary name to watch amid a challenging retail backdrop — useful for idea flow but not immediate company news. 3 Consumer Discretionary Stocks Worth Watching: American Eagle, Under Armour, and Bath & Body Works
• Negative Sentiment: Multiple plaintiff firms (Rosen, Faruqi, Pomerantz, Gross, Schall, Bragar Eagel & Squire, etc.) have issued shareholder alerts and filed a securities?fraud class action alleging misstatements tied to the June 4, 2024–Nov 19, 2025 class period. The proliferation of filings increases the company’s litigation exposure and could pressure the stock if settlements or damages become likely. Representative notice: BBWI Deadline: Rosen Law Firm Urges Bath & Body Works, Inc. (NYSE: BBWI) Stockholders…
• Negative Sentiment: There is an imminent March 16, 2026 lead?plaintiff filing deadline highlighted by several firms — that deadline concentrates near?term legal activity and may keep headline risk elevated over the coming days. BBWI DEADLINE NOTICE: ROSEN, LEADING TRIAL ATTORNEYS…

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. Morgan Stanley reaffirmed an “equal weight” rating and issued a $18.00 target price (down from $43.00) on shares of Bath & Body Works in a research report on Friday, November 21st. Telsey Advisory Group lifted their target price on Bath & Body Works from $23.00 to $25.00 and gave the stock a “market perform” rating in a research report on Thursday, March 5th. The Goldman Sachs Group downgraded Bath & Body Works from a “buy” rating to a “neutral” rating and reduced their target price for the company from $39.00 to $17.00 in a report on Thursday, November 20th. UBS Group raised their price target on Bath & Body Works from $21.00 to $22.00 and gave the stock a “neutral” rating in a research note on Monday, February 23rd. Finally, Guggenheim started coverage on Bath & Body Works in a research note on Tuesday, December 9th. They issued a “neutral” rating for the company. Three analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $24.00.

Bath & Body Works Price Performance

The firm has a market cap of $4.02 billion, a price-to-earnings ratio of 6.23, a P/E/G ratio of 2.00 and a beta of 1.48. The firm’s 50 day moving average price is $22.39 and its two-hundred day moving average price is $23.24.

Bath & Body Works (NYSE:BBWI) last issued its quarterly earnings results on Wednesday, March 4th. The company reported $2.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.77 by $0.28. Bath & Body Works had a negative return on equity of 45.60% and a net margin of 8.90%.The firm had revenue of $2.72 billion for the quarter, compared to analysts’ expectations of $2.59 billion. During the same quarter in the previous year, the firm posted $2.09 EPS. The firm’s revenue for the quarter was down 2.3% on a year-over-year basis. Bath & Body Works has set its Q1 2026 guidance at 0.240-0.300 EPS and its FY 2026 guidance at 2.400-2.650 EPS. On average, analysts anticipate that Bath & Body Works, Inc. will post 3.3 earnings per share for the current year.

Bath & Body Works Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 6th. Stockholders of record on Friday, February 20th were paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 4.1%. The ex-dividend date was Friday, February 20th. Bath & Body Works’s dividend payout ratio is 25.40%.

Hedge Funds Weigh In On Bath & Body Works

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. First Horizon Corp acquired a new stake in shares of Bath & Body Works in the 3rd quarter worth $29,000. Global Retirement Partners LLC purchased a new position in Bath & Body Works during the fourth quarter worth about $31,000. Activest Wealth Management acquired a new stake in Bath & Body Works in the fourth quarter valued at about $32,000. Geneos Wealth Management Inc. lifted its position in Bath & Body Works by 217.7% in the first quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock valued at $35,000 after purchasing an additional 801 shares during the period. Finally, Parallel Advisors LLC boosted its holdings in Bath & Body Works by 42.6% in the 4th quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock valued at $38,000 after purchasing an additional 567 shares in the last quarter. 95.14% of the stock is currently owned by hedge funds and other institutional investors.

About Bath & Body Works

Bath & Body Works, Inc is a leading specialty retailer focused on personal care, home fragrance and complementary products. Through its flagship Bath & Body Works brand, the company offers a diverse assortment of shower gels, lotions, fragrance mists, candles and home fragrance items. Its product portfolio also includes the White Barn Candle Co range of premium scented candles and diffusers. Bath & Body Works serves consumers through a combination of brick-and-mortar stores and e-commerce platforms, delivering seasonal collections, limited-edition releases and signature scent lines.

Founded in 1990 as part of Limited Brands (now L Brands), Bath & Body Works opened its first store in New Albany, Ohio, and quickly expanded across the United States.